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A bipartisan bill to stabilize Obamacare will reduce the federal deficit, according to the Congressional Budget Office (CBO) on Wednesday.

According to the CBO, the bipartisan bill will cut the federal deficit by 3.8 billion over the next decade.  The legislation will not have a significant impact on the number of people with health insurance.

The CBO together with the Joint Committee on Taxation (JCT) analyzed the impact of the Bipartisan Health Care Stabilization Act of 2017.

Additionally, the CBO and JCT reported that enacting the bipartisan legislation will “not increase net direct spending or on-budget deficits in any of the four consecutive periods beginning in 2028.”

Senate Health Committee Chairman Lamar Alexander (R-Tenn.) and Ranking Member Patty Murray (D-Wash.) introduced the bipartisan bill.  Twenty-four senators co-sponsored the legislation, which will extend the cost-sharing reduction (CSR) payments to health insurers until 2019.

Additionally, the bipartisan bill will protect consumers from paying higher premiums this year. States will also have significant flexibility to create greater choices among health insurance policies.

Senators Alexander and Murray negotiated on a bipartisan healthcare deal after the Trump administration ended the CSR payments to health insurers. As a result, the Obamacare premiums increased substantially in multiple States, which filed a lawsuit against the federal government.

In August, the CBO and JCT also released its analysis on the impact of stopping the CSR payments. Their findings indicate that such action will increase the federal deficit by $194 billion from 2017 to 2016.

Bipartisan Bill to Fix Obamacare does not bailout health insurers

Last week, President Donald Trump indicated his willingness to support the bipartisan bill as a temporary solution for Obamacare. He also reiterated his objective to eventually repeal the current healthcare system.

A number of Republicans expressed opposition to the bipartisan bill. They consider the CSR payments as a “bailout” to insurance companies. Trump share their view on the matter.

In a statement, Sen. Alexander emphasized that the bipartisan legislation “does not bailout insurance companies.” It provides benefit to consumers and tax payers to the tune of $3.8 billion.

“The ball is in the hands of the White House right now. They have our recommendation. They made some suggestions, that’s the normal legislative process,” said Sen. Alexander.